Evolution and economics are both examples
of a larger mysterious phenomenon
Living along the Orioco River that borders Brazil and Venezuela are the Yanomamö people, hunter-gatherers whose average annual income has been estimated at the equivalent of $90 per person per year. Living along the Hudson River that borders New York State and New Jersey are the Manhattan people, consumer- traders whose average annual income has been estimated at $36,000 per person per year. That dramatic difference of 400 times, however, pales in comparison to the differences in Stock Keeping Units (SKUs, a retail measure of the number of types of products available), which has been estimated at 300 for the Yanomamö and 10 billion for the Manhattans, a difference of 33 million times! (continue reading…)
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A new fMRI study debunks the myth that
we are rational-utility money maximizers
Imagine that your child’s private school tuition bill of $20,000 is due and the only source you have for paying it is the sale of some of your stock holdings. Fortunately, you got in on the great Google godsend and purchased 100 shares at $200 each, for a total investment of $20,000, and the stock is now at $400 a share. (continue reading…)
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The neuroscience of choice exposes the power of ideas
Have you ever watched a white rat choose between an 8 and 32 percent sucrose solution by pressing two different bars on variable-interval schedules of reinforcement? No? Lucky you. I devoted two years of what would otherwise have been a misspent youth to running choice experiments with rats in Skinner boxes for my master’s thesis on “Choice in Rats as a Function of Reinforcer Intensity and Quality.” Boys gone wild! (continue reading…)
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The 20th century philosopher-novelist Ayn Rand, author of The Fountainhead and Atlas Shrugged, famously called herself a “radical for capitalism.” The libertarian writer and journalist Brian Doherty has borrowed the epithet for his remarkably engaging and encyclopedic history of the movement in “Radicals for Capitalism: A Freewheeling History of the Modern American Libertarian Movement” (Public Affairs, 768 pages, $35). (continue reading…)
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Why our intuitions about how the world works
are often wrong
Thirteen years after the legendary confrontation over the theory of evolution between Bishop Samuel Wilberforce (“Soapy Sam”) and Thomas Henry Huxley (“Darwin’s bulldog”), Wilberforce died in 1873 in an equestrian fall. (continue reading…)
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